Karvy, Macquarie upgrade RComm after tower deal

Written by Reuters | Mumbai | Updated: Jun 30 2010, 04:59am hrs
Reliance Communications announcement to sell its telecom towers will help the countrys no 2 mobile operator cut its debt by more than half to about $3.9 billion, a source said. The move has triggered broker upgrades in a cut-throat sector.

The deal prompted Macquarie to raise its rating on Reliance Comm to outperform from underperform, making it the brokerage's only positive pick in a crowded Indian telecom sector. Macquarie lifted its earnings per share forecasts for Reliance Comm by 9% and 8%, respectively, in the financial years ending in March 2011 and 2012.

Karvy Stock Broking also upgraded its rating on Reliance Comm, to market performer from under performer.